WGU D196 Pre-Assessment(Latest Update)
Actual Questions and Verified Answers/D196 Pre-
Assessment|Latest Version!!! Already Graded A+
How does a classified balance sheet provide useful information to a
decision maker?
-It provides data for a period of time instead of as a point in time.
-It distinguishes between current and long-term assets.
-It distinguishes liabilities from expenses.
-It provides data that are not publicly disclosed.
- Answer -It distinguishes between current and long-term assets.
What information does a balance sheet provide to a decision maker?
-Summary of the operating performance of a company at a particular
date
-Summary of the operating performance of a company during a period
-Summary of the cash flows of a company during a period
-Summary of the financial position of a company at a particular date
- Answer -Summary of the financial position of a company at a
particular date
What is an account payable?
-The amount to be paid by a company for dividends to shareholders
-The amount owed by a company that purchased goods or services
from a supplier on credit
The amount to be paid by a company in repayment of both loans and
dividends
The amount owed to a company that sold goods or services to a
customer on credit - Answer -The amount owed by a company that
purchased goods or services from a supplier on credit
pg. 1
,What is an example of a financial cost that would result from poor
direct labor budgeting and planning?
-Delayed cash collections from credit customers
-Increased hiring, training, and overtime costs
-Excessive inventory storage costs
-Increased depreciation costs for facilities
- Answer -Increased hiring, training, and overtime costs
What does a manager have control over in a cost center?
-Dividends
-Assets
-Costs
-Revenues - Answer -Costs
What should be considered when developing a measure to evaluate
the performance of a manager?
-Only noncontrollable costs
-Only controllable costs
-Only centralized costs
-Only indirect costs
- Answer -Only controllable costs
In some companies, the performance measures for profit center
managers are heavily influenced by cost allocations downward from
organizational units (such as company headquarters).
Why is this a mistake?
-Controllable costs should not be included in the performance
evaluation measure of a profit center manager.
-Revenues should not be included in the performance evaluation
measure of a profit center manager.
pg. 2
,-Uncontrollable costs should not be included in the performance
evaluation measure of a profit center manager.
-Direct costs should not be included in the performance evaluation
measure of a profit center manager.
- Answer -Uncontrollable costs should not be included in the
performance evaluation measure of a profit center manager.
Which budget should include the expected cost of supplies used by
the office staff of the corporate headquarters?
-Production budget
-Sales budget
-Direct materials budget
-Administrative expense budget
- Answer -Administrative expense budget
Which items are uncontrollable, external variables that make it
difficult to forecast the level of sales?
-Direct labor and advertising expenditures
-Selling price and sales effort
-Inventory level and product management
-Customer tastes and economic conditions
- Answer -Customer tastes and economic conditions
What is the correct sequence of budgets in a manufacturing business?
-Direct materials, sales, production
-Production, direct materials, sales
-Sales, direct materials, production
-Sales, production, direct materials
- Answer -Sales, production, direct materials
pg. 3
, Which type of business organization has a major focus on direct
materials, direct labor, and overhead?
-Retail
-Merchandising
-Service
-Manufacturing
- Answer -Manufacturing
What are the three primary functions that company managers use
managerial accounting information for?
-Planning, controlling, and evaluating
-Operating, investing, and financing
-Reporting, allowing, and negotiating
-Borrowing, repaying, and lending
- Answer -Planning, controlling, and evaluating
What is the effect of a company's accounting department maintaining
high ethical standards?
-The company can report more favorable results in its financial
statements.
-The company's accounting information will decrease in value.
-The company can hire fewer accountants to do the same amount of
work.
-The company's accounting information will increase in value.
- Answer -The company's accounting information will increase in
value.
Why might employees be interested in their company's financial
accounting information?
-Financial statement data are used to record long term liabilities.
pg. 4
Actual Questions and Verified Answers/D196 Pre-
Assessment|Latest Version!!! Already Graded A+
How does a classified balance sheet provide useful information to a
decision maker?
-It provides data for a period of time instead of as a point in time.
-It distinguishes between current and long-term assets.
-It distinguishes liabilities from expenses.
-It provides data that are not publicly disclosed.
- Answer -It distinguishes between current and long-term assets.
What information does a balance sheet provide to a decision maker?
-Summary of the operating performance of a company at a particular
date
-Summary of the operating performance of a company during a period
-Summary of the cash flows of a company during a period
-Summary of the financial position of a company at a particular date
- Answer -Summary of the financial position of a company at a
particular date
What is an account payable?
-The amount to be paid by a company for dividends to shareholders
-The amount owed by a company that purchased goods or services
from a supplier on credit
The amount to be paid by a company in repayment of both loans and
dividends
The amount owed to a company that sold goods or services to a
customer on credit - Answer -The amount owed by a company that
purchased goods or services from a supplier on credit
pg. 1
,What is an example of a financial cost that would result from poor
direct labor budgeting and planning?
-Delayed cash collections from credit customers
-Increased hiring, training, and overtime costs
-Excessive inventory storage costs
-Increased depreciation costs for facilities
- Answer -Increased hiring, training, and overtime costs
What does a manager have control over in a cost center?
-Dividends
-Assets
-Costs
-Revenues - Answer -Costs
What should be considered when developing a measure to evaluate
the performance of a manager?
-Only noncontrollable costs
-Only controllable costs
-Only centralized costs
-Only indirect costs
- Answer -Only controllable costs
In some companies, the performance measures for profit center
managers are heavily influenced by cost allocations downward from
organizational units (such as company headquarters).
Why is this a mistake?
-Controllable costs should not be included in the performance
evaluation measure of a profit center manager.
-Revenues should not be included in the performance evaluation
measure of a profit center manager.
pg. 2
,-Uncontrollable costs should not be included in the performance
evaluation measure of a profit center manager.
-Direct costs should not be included in the performance evaluation
measure of a profit center manager.
- Answer -Uncontrollable costs should not be included in the
performance evaluation measure of a profit center manager.
Which budget should include the expected cost of supplies used by
the office staff of the corporate headquarters?
-Production budget
-Sales budget
-Direct materials budget
-Administrative expense budget
- Answer -Administrative expense budget
Which items are uncontrollable, external variables that make it
difficult to forecast the level of sales?
-Direct labor and advertising expenditures
-Selling price and sales effort
-Inventory level and product management
-Customer tastes and economic conditions
- Answer -Customer tastes and economic conditions
What is the correct sequence of budgets in a manufacturing business?
-Direct materials, sales, production
-Production, direct materials, sales
-Sales, direct materials, production
-Sales, production, direct materials
- Answer -Sales, production, direct materials
pg. 3
, Which type of business organization has a major focus on direct
materials, direct labor, and overhead?
-Retail
-Merchandising
-Service
-Manufacturing
- Answer -Manufacturing
What are the three primary functions that company managers use
managerial accounting information for?
-Planning, controlling, and evaluating
-Operating, investing, and financing
-Reporting, allowing, and negotiating
-Borrowing, repaying, and lending
- Answer -Planning, controlling, and evaluating
What is the effect of a company's accounting department maintaining
high ethical standards?
-The company can report more favorable results in its financial
statements.
-The company's accounting information will decrease in value.
-The company can hire fewer accountants to do the same amount of
work.
-The company's accounting information will increase in value.
- Answer -The company's accounting information will increase in
value.
Why might employees be interested in their company's financial
accounting information?
-Financial statement data are used to record long term liabilities.
pg. 4
